The NEW US Economy

There is also at least one other dynamic behind the lack of shipping to
Asian ports.

In a report on NPR last weekend, a US soybean farmer is unable to send
his product, formerly widely used in Japan due his low prices, due to a
total lack of available shipping containers. It seems that since most US
consumers are hunkering down, US wholesalers retailers have cut back on
orders from the Orient. Ergo, few containers are moving eastward to the
US. In turn, very little can move westward.

 

Here's one reason Malorn: Abuse. If the CEO's had driven down in their fuel efficient 35 MPG American cars to beg for money, things might have gone different. As it was, they don't have cars that can do that. So instead, they each took their own private plane - costing tens of thousands of dollars each - down there to beg for money. After all, they're CEO's, they should live in the lap of luxury, right? And the US government is obligated to maintain their lifestyle because they're too big to fail, right?

When you get right down to it, the big three folding would be bad for the economy. I don't think you'll hear anyone deny it. But i have yet to see anyone in power (either in government or the big three) propose a plan that will solve their problems and pay back the US tax payer for any bailout they receive. Rather they're trying to get money to follow the same old BS and failed policies.

 

Hehe...

Chevy has 6 basic car models:
Cobalt (25/37)
Malibu (22/33)
Aveo (27/34)
HHR (22/32)
Impala (18/29)
Corvette (16/26)

Toyota has 7 basic car models:
Prius (48/45)
Yaris (29/36)
Corolla (26/35)
Matrix (26/32)
Camry (21/31)
Venza (21/29)
Avalon (19/28)

And keep in mind from that above list... the Cobalt only got 30 MPG highway in 2008, from what i can find. I certainly applaud them for increasing that. Also, the above list includes the most fuel efficient versions of each model. All of Chevy's models have options for engines that provide significantly lower mileage, while Toyota's don't.

 

We can only hope this happens.

 

That statement isn't even close to being true. Toyota offers different engine and transmission combinations on all of their models except the Prius.

Cobalt XFE 2.2L 5M ------- Economy -------- Corolla 1.8L 5M
---- (25/30/37) ---------------------------------- (26/30/35)

Cobalt 2.2L 4A -------------- Power ---------- Corolla 2.4L 5A
---- (24/27/33) ------------------------------------ (22/25/30)


Malibu 2.4L 6A ------------ Economy ---------- Camry 2.4L 5M
--- (22/25/33) ------------------------------------ (21/25/31)

Malibu 3.6L 6A ------------- Power ------------ Camry 3.5L 6A
--- (17/20/26) ------------------------------------- (19/23/28)


These are but two examples of popular cars but it goes across the entire model line. These numbers are from Fuel Economy for 2009 models.

 

It would benefit EVERYBODY because people would stop wasting their money on crap cars. Of course, judging by GM's sales lately, it looks like people are already wising up.

 

China makes fuel efficient cars too. In fact, last I read, they also have a PHEV coming out. If all we're going to judge on is fuel efficiency, then we shouldn't forget the Chinese.

Just because someone makes it doesn't mean it's reliable. I can appreciate that GM has made strides in making models that compare favorably with the foreign competition. But for me, the bottomline is reliability. I've owned three American cars (Ford, Buick, Dodge), and now I'll only own Japanese cars (unless something drastic changes in the American car industry). I know with my Toyota or Honda in the driveway, the car will fire up every time I turn the key (or press the button), and the only time it's in the shop is when I've scheduled it at my convenience for a regularly scheduled maintenance service. Can't say the same for the American cars I've had. As such, it doesn't really matter what window dressing MPG figures are put on the American cars. I want a car to last reliably for 10 years with no problems.... in my experience, American cars won't meet up to that. ERgo, I don't buy American.

 

Here is what I predict will happen: GM et al will receive the billions of dollars. Due to the severe global recession, they still won't be able to sell the vehicles. They will still layoff a lot of unionized American workers

I suggest instead we *pay* American consumers to buy domestic vehicles. That immediately solves the problem of "depression era" sales. Since I first mentioned this idea, I expect 0.25% of the entire bailout cost of $35 billion

Lessee here, carry the one .... move the zero ... um ... eight million, seven hundred and fifty thousand? I'm not very good at math after having a few drinks. Certified check, bank draft, money order, or cash only, please

As far as shoveling billions of taxpayer dollars into large corporations, I suggest you look into the history of Crown Corporations here in Canada. In particular, the Export Development Corporation, Industry Canada, Canadian International Development Agency, and the Hibernia Management and Development Company

A Crown Corp is legally exempt from audit. All the Auditor General can do is report the billions that flow in, where it fades into a gray mist of nothing.

Companies like Bombardier have whined for decades about needing more "help" to be competitive. Well, here's a thought, Bombardier, why not cut out the waste, lavish fat-cat salaries, seemingly bizarre product decisions, and make products the entire world will line up to buy?

Even better, Bombardier, how about paying back even a teeny tiny fraction of the billions of taxpayer dollars you received?

Or how about HMDC pulling out the taxpayer teat on Exxon Mobil? When oil prices were at record highs, E-M laughed all the way to the bank as they operated the oil platform in the Grand Banks area. Now that oil prices have come down, HMDC legally guarantees to cover operating costs, so E-M can still laugh all the way to the bank

What a deal! Let's have more Corporate Socialism! A huge oil company gets all of its expenses reimbursed whether oil prices are at a record high, or where they are right now. They *can't* lose!

So I guess we are doomed to have Corporate Socialism due to the whiny threat of the end of the world as we know it. Why not just take off the Chevy Badge and slap on the Official Seal? That should work, we saw how well that worked in the former USSR

 

here is a better idea,,, lets bail out only the UAW members and let all other Americans get fired and go on unemployment....

brilliant. like the UAW is some special class of worker just because they all voted for and worked for and raised money for democrats and obama.

should make for real good PR.

 

stop fear mongering my friend... it wont be that bad if they just wake up now... it will be far worse if they take the money and then go belly up in 2010 or 2011.

the game is over,,, the fat lady is singing,,, she starting singing about 20 years ago.

 

i hate to say this buy you are correct,,, the only thing i will change is that people have been wising up to the big 3 for about 20 years,,,, it is just reaching critical mass now.

 

i also look at resale value since i purchase my cars. i (me my wife and our kids own five cars, all foreign,, four toyotas one audi a 2000 A6-- to be replaced by the plug in prius around 2009-2010. i will not consider buying big 3 today if they get one more dime of my tax money... ever.